Harsh Economic Conditions Daunt Coca-Cola Hellenic's Romanian Sales In 1Q

05.10.2011 By Andrei Circhelan

Coca-Cola Hellenic sale volumes dropped "by low double-digits" in Romania in the first quarter compared with the year-earlier period, because of difficult economic conditions, high unemployment, low consumer confidence and a reduction of the gross domestic product.

However, the company has increased its market share on the carbonated soft drinks segment in Romania, mostly due to the positive evolution of single serve packages, Coca-Cola Hellenic said in its financial report.

"Volume in Romania declined by low double-digits as economic conditions remain very challenging. This was further intensified by the timing of Easter this year," the company said in the report.

"Our higher margin single serve packages continue to perform significantly better than the overall declining market due to our strong focus on execution across all channels.

We expanded our leadership ratio in the sparkling category, which is in excess of 2 times over our nearest competitor," it added.

On an international level, Coca-Cola Hellenic sold 434 million cases in January to March, as opposed to 431 million in the same interval of the previous year.

Net revenue from sales rose 3% on the year, to EUR1.41 million, and the company posted a net loss of EUR8.9 million, compared to a net profit of EUR25.7 million.

The Coca-Cola group recently said sales in Romania dropped 12% in the first quarter, because of harsh economic conditions.

Coca-Cola Hellenic owns four plants in Romania.